Inheritance in Japan for Foreigners: A Quick Guide

Navigating inheritance in Japan as a foreigner? Learn the basics of Japanese inheritance law, applicable laws, and the importance of a will. Sumikawa Law Office, English-speaking lawyers near Tokyo, can assist.

(Introduction) When a foreign national living in Japan, or a foreigner who owns property in Japan (like real estate or bank accounts), passes away, their family faces a complex question: how is the inheritance handled? International inheritance law can be challenging.

Here is a brief overview of what foreigners need to know about inheritance in Japan.

Which Country’s Law Applies? (Governing Law)

Many people assume Japanese law automatically applies to assets in Japan. However, Japan’s private international law states that inheritance is generally governed by the law of the deceased person’s nationality (their “home country law”).

  • Example: If an American citizen passes away, US law (specifically, the law of their state) generally governs their entire estate, including their property in Japan.

However, there are exceptions, and the process itself (like registering real estate or releasing bank accounts) must still follow Japanese procedures, which can create conflicts or complications.

The Critical Role of a Will (Yuigon)

Because different countries’ laws may be involved, having a valid Will (遺言, Yuigon or Igon) is important for foreigners connected to Japan.

A Will can simplify the process immensely for your heirs. It helps clarify who should inherit your assets, regardless of where they are located. For assets in Japan, creating a Will that is legally valid in Japan (such as a Notary Deed Will) can make the procedures at Japanese banks and legal affairs bureaus significantly smoother for your family.

What If Japanese Law Applies?

In some cases (for example, if the deceased’s home country law directs back to the law of the location of the assets), Japanese law may apply. Under Japan’s Civil Code:

  • The spouse is always an heir.
  • Children (or their descendants) are the first in line (along with the spouse).
  • If there are no children, parents (or grandparents) are next.
  • If none of the above exist, siblings become heirs.

Professional Advice & Mandatory Registration

International inheritance involves complex legal issues, differing procedures, and potential language barriers. Waiting too long can lead to frozen assets and difficult disputes.

Furthermore, a recent change in Japanese law now makes it mandatory to register inherited real estate within three years of learning of the inheritance. This new rule makes timely and accurate procedures essential if you inherit real estate in Japan.

If you are dealing with an inheritance matter in Japan or wish to prepare a Will, seeking professional advice early is crucial. The English-speaking attorneys at Sumikawa Law Office are experienced in supporting foreigners with Japanese inheritance law and procedures. Contact us for a consultation.

Inquiries Regarding Visas and Status of Residence | We do not handle Visa cases.

Thank you for visiting our website. We are a law firm in Japan, and we often receive inquiries from those looking for a Japanese lawer to assist with visa and immigration matters.

Please be advised that our firm does not handle cases related to visas or status of residence in Japan.

For assistance with these matters, we recommend searching online for terms such as “visa lawyer Japan.” This should provide you with a list of qualified professionals who specialize in this area of law.

Additionally, if you are considering starting a business in Japan and require assistance with visa applications in that context, we can recommend the Kawasaki One-Stop Business Startup Center. We collaborate with this organization, and they are equipped to handle visa consultations for entrepreneurs. To request a consultation, please visit their website directly at https://onestop-kawasaki.com/.

We appreciate your understanding, and hope this information is helpful for you.

Lectures on Japanese Law for International Graduate Students

For the current academic year, I (Sumikawa) have been appointed as a guest professor at the Yokohama National University Graduate School, where I am teaching a course on Japanese law for international students.

All lectures are conducted entirely in English. To accurately convey the unique characteristics and practical applications of the Japanese legal system to students from diverse legal backgrounds, extensive and time-consuming preparation is required. Being new to university lecturing, each class presents its own challenges, but at the same time, it is a highly rewarding experience.

Although the course lasts for only one semester, the dialogue with these enthusiastic students from various countries is a truly stimulating experience. In response to their proactive questions, I draw upon my full command of English, though it can be frustrating at times not being able to provide explanations as smoothly as I would in Japanese.

Through this opportunity, I hope to impart practical knowledge and legal ways of thinking that will be of use to the students in their future careers.

New Criminalization of Cannabis Use: Warning for Foreign Residents and Tourists

Recently (March 2025) in Japan, there was the first arrest case for the use of cannabis under the newly revised Cannabis Control Act (which came effect from December 2024).

Key Point of the Legal Amendment: Criminalization of Use

Previously, under Japan’s Cannabis Control Act, while the “possession” of cannabis was punishable, the act of “using” it was not criminalized (unlike stimulants, etc.). However, due to the recent legal revision, the “use” of cannabis itself is now clearly defined as a criminal offense and subject to punishment.

Penalties for the crime of using cannabis in Japan:

Simple use: imprisonment for up to 7 years
For profit: imprisonment for between 1 and 10 years, or a fine of up to 3 million yen, or both, depending on the circumstances of the case

Warning for Foreign Residents, Especially Young People

In recent years, there has been an increasing trend of foreign nationals, particularly young Americans residing in Japan, being arrested for purchasing or using cannabis within the country, potentially influenced by different legal standards or social acceptance in their home countries or states. Before this amendment, if cannabis (as physical evidence of possession) was not found during a police investigation or questioning, prosecution or arrest did not occur.

However, this has now changed. Following the legal revision, even if an individual is not found possessing cannabis at the time of investigation, if past use is confirmed through scientific methods such as urine analysis, they can be arrested, detained, and potentially face criminal trial for the offense of using cannabis.

Severe Consequences of a Drug Conviction

Receiving a guilty verdict for a drug offense in Japan (including cannabis, MDMA, stimulants, etc.) carries extremely serious consequences beyond the imposed criminal sentence, particularly under immigration law. Specifically, it typically results in deportation (forced removal) from Japan and, as a general rule, a permanent ban on re-entering the country in the future.

For individuals who have already established a life in Japan, with jobs, families, and community ties, the impact of such consequences is immeasurable, potentially overturning their entire lives. Furthermore, this extends beyond personal repercussions, causing significant trouble and distress to family members, friends, employers, and others in their social network.

Therefore, we urge people to understand that regulations concerning illegal drugs, including cannabis, are strict in Japan, potentially more so than in some other countries. This applies equally to other synthetic drugs like MDMA. It is imperative to accurately understand Japanese laws and strongly reaffirm your commitment to having absolutely no involvement with any illegal drugs while in Japan. A casual attitude or misunderstanding could lead to irreversible consequences.

Drug offenses profoundly impact your future and the lives of those around you. We strongly encourage compliance with Japanese laws and hope you lead a safe and healthy life in Japan.

Guide to Purchasing Real Estate in Japan for Foreigners

Increasing Popularity of Japanese Real Estate

In recent years, Japan’s real estate market has attracted growing interest from foreign investors and individuals seeking second homes. With a high-quality infrastructure, and appealing urban and rural properties, Japan presents a compelling investment opportunity for non-residents. Cities such as Tokyo, Osaka, and Fukuoka, as well as resort areas like Niseko, Hakuba and Hakone, have experienced rising demand from international buyers.

Rising Inquiries About Properties in Tokyo and Resort Areas

Our firm has seen an increase in inquiries from foreign clients interested in purchasing real estate in Japan. Many inquiries focus on properties in the greater Tokyo area, where demand remains strong, as well as vacation homes in popular resort regions. Whether purchasing for investment, personal use, or as part of a long-term relocation plan, it is essential to understand the legal and financial processes involved in real estate transactions in Japan.

Finding a Real Estate Agent Who Can Communicate in English

One of the most critical steps in purchasing real estate in Japan is finding an agent who can effectively communicate in English. While some larger real estate firms cater to international buyers and have English-speaking staff, many local agencies primarily operate in Japanese. Working with a reliable agent who understands both the language and the complexities of Japanese property transactions can significantly streamline the process and help avoid potential misunderstandings.

Understanding the Property Purchase Process in Japan

Unlike in some countries where real estate transactions involve extended escrow periods, transactions in Japan are typically completed upon the simultaneous exchange of funds and ownership documents. Therefore, buyers must ensure that payment can be confirmed immediately upon transfer.

A major challenge for foreign buyers is the requirement for a Japanese bank account to facilitate the transaction. Many sellers will only finalize a sale if funds are transferred from a domestic bank account, where instant verification is possible. However, opening a Japanese bank account usually requires a residential address in Japan, which poses a significant obstacle for non-residents.

The Importance of Legal Support in Real Estate Transactions

For foreigners without a Japanese address, obtaining legal support of an attorney from the contract stage is highly beneficial. An attoreny (Bengoshi) can assist with the transaction process, ensuring compliance with legal requirements and facilitating the payment process. An attorney handling the case can hold purchase funds in a trust account and manage the payment of the purchase price, ensuring a smooth and secure transaction process. However, please note that an attorney cannot be solely responsible for handling payments; payment support must be part of the broader legal services related to the case.

Navigating Japan’s real estate market as a foreigner can be complex, but with the right legal and professional support, it is entirely feasible. Our law firm provides comprehensive assistance, from contract negotiations to payment procedures, ensuring that foreign buyers can acquire real estate in Japan smoothly and legally.